Gold edging towards $1,700 an ounce

The US debt crisis was temporarily solved with the enactment of the new law on raising the federal debt limit. But damage has been done in the form of large-scale uncertainty in the US debt market, this year and the succeeding years.

Then there is the never-ending public debt uncertainty in a number of European economies, particularly Greece, Ireland, Spain, Italy, Portugal and a few others. The flight of some investments from sovereign debt to a few currencies (like Switzerland’s) and commodities like oil, gold, silver, is expected to increase in the future.

Gold is among the favorite commodities. Today it reached the $1,660 per troy ounce mark. The $1,700 mark is not that far, considering that it touched the $1,400 mark last November or just 10 months ago. Many currencies will experience some turbulence in value as the on-going global economic uncertainties unfold.